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To: Chairman Sarlo and Members of the Senate Budget Committee

From: Winifred Smith-Jenkins, Ed. D, Director of Early Learning for Policy and Advocacy

Date: April 10, 2025

Re: Testimony of Advocates for Children of New Jersey on the Fiscal Year 2026 State Budget

Good afternoon, Chairman Sarlo and Members of the Senate Budget Committee.

My name is Winifred Smith-Jenkins, and I serve as the Director of Early Learning for Policy and Advocacy at Advocates for Children of New Jersey (ACNJ). Thank you for the opportunity to provide testimony on the Fiscal Year 2026 State Budget.

ACNJ appreciates the Administration and Legislature’s continued commitment to children and families. Your investments—such as the state child tax credit, NJ Family Care, pre-K to 12^th grade education funding, support for food security programs, and the strengthening of maternal health and home visiting services—reflect a deep dedication to ensuring all children in New Jersey have the opportunity to thrive.

However, realizing that vision requires continued, strategic investment, especially in the Department of Human Services, Division of Family Development Child Care Assistance Program, which thousands of working families with children between the ages of 0 and 13 rely on every day.

Child care, after-school, and summer camp programs across New Jersey continue to face a severe workforce shortage, which limits their ability to serve families. Despite signs of broader economic recovery, child care employment is still 8% below pre-pandemic levels (U.S. Bureau of Labor Statistics, 2024). This staffing gap means classrooms remain closed, families are stuck on waitlists, and employers across many industries face higher absenteeism and lower productivity—all of which hurt our economy.

The New Jersey Child Care Assistance Program is a lifeline for many low-income families. It enables parents to work while ensuring their children are in safe, nurturing environments. But this system is at a breaking point. The proposed budget supports subsidies for only 70,000 children. At the same time, the number of eligible families continues to grow and does not reflect the established pace of service expansion. Seasonal enrollment surges—especially during summer months—only add to the pressure. And if the federal government implements a new work requirement for Medicaid recipients, the demand will increase even more.

In addition, new federal regulations will require states to begin making prospective payments to child care, after-school, and summer programs in 2026, paying them up front rather than after services are delivered. While this is a positive move for stabilizing these businesses, implementing it effectively will require careful planning, system upgrades, and provider support.

Without full funding, New Jersey will struggle with the thoughtful implementation required to meet the new requirements and will not have the time to adequately support the providers tasked with doing this work. A $20 million shortfall in the DFD’s budget would mean fewer children served, more parents unable to work, and added strain on already stretched-thin providers.

The solution is straightforward: fully fund DFD’s budget.

This is more than just a fiscal decision—it’s a reflection of our values. Full funding means we protect access to care and education for children and families in need, support New Jersey’s workforce, comply with federal standards, and invest in a child care system that is stable, equitable, and essential for our shared future.

Thank you for your time and your continued commitment to the children and families of New Jersey.